Zcash (ZEC) ZEC

Zcash (ZEC) is a cryptocurrency launched on 28 October 2016 that lets users hide the sender, the recipient and the amount of a transaction thanks to zero-knowledge proofs. Unlike Monero, privacy on Zcash is optional: the network has both transparent addresses, which work like Bitcoin, and shielded addresses, which encrypt transaction details. ZEC has a fixed supply of 21 million coins. Here is how Zcash works, its history, its regulatory situation and its risks.

What is Zcash?

Zcash comes from academic research. Johns Hopkins professor Matthew Green and his students Ian Miers and Christina Garman first designed Zerocoin; researchers from MIT, the Technion and Tel Aviv University, who had worked on zk-SNARKs, then joined the project. A company led by Zooko Wilcox, the Zcash Company, launched the network. It was renamed the Electric Coin Company (ECC) in 2019 and became a subsidiary of the non-profit Bootstrap in 2020. The independent Zcash Foundation develops another node, Zebra.

How Zcash works

Proof of work and supply

Zcash uses proof of work with the Equihash algorithm. A block is produced about every 75 seconds, and the block reward halves roughly every four years until the 21 million cap is reached, like Bitcoin. The current block reward is 1.5625 ZEC. Part of each reward funds development: 8% goes to Zcash Community Grants and another share accumulates in a lockbox. The NU6.1 upgrade of 24 November 2025 introduced a funding model that gives coin holders a say in how these funds are granted.

Shielded transactions and zero-knowledge proofs

A zero-knowledge proof lets someone prove that a transaction is valid (no double spending, balanced amounts) without revealing its content. On Zcash, a payment between shielded addresses hides the parties and the amount; a payment between transparent addresses is fully public. Users can share a viewing key to disclose their history to an auditor or a tax authority if needed.

The launch in 2016 required a “trusted setup” ceremony, held in several locations, whose secret material then had to be destroyed. In 2019, ECC researcher Sean Bowe found Halo, a method that generates such proofs without a trusted setup, later adopted by the network.

A short history of Zcash

• 28 October 2016: launch of Zcash.
• May 2018: New York regulators approve ZEC trading on Gemini.
• February 2019: the Zcash Company becomes the Electric Coin Company.
• 24 November 2025: NU6.1 network upgrade and new funding model.
• January 2026: the ECC team resigns after a dispute with the Bootstrap board and forms a new company; the network keeps running. The same month, the US SEC closes its review of Zcash, according to public reports.
• 25 August 2026: Grayscale’s Zcash ETF (ZCSH) starts trading on NYSE Arca.

What is Zcash used for?

ZEC is used for private payments and donations, and as a store of value by people who want Bitcoin-like scarcity with financial privacy. Some organisations, such as the Electronic Frontier Foundation, accept ZEC donations. Because privacy is optional, ZEC can be held transparently on regulated exchanges and moved to a shielded wallet by the user.

Regulation: EU and United States

European Union. Under MiCA, trading platforms must prevent the admission of crypto-assets with a built-in anonymisation function unless holders and their transaction history can be identified. The anti-money-laundering regulation (EU) 2024/1624 goes further: from 10 July 2027, crypto-asset service providers may not keep accounts that allow the anonymisation of transactions, including through anonymity-enhancing coins. Zcash’s transparent addresses help explain why several EU platforms still list ZEC, but availability may change before 2027.

United States. Holding and trading ZEC is legal. It is listed on US platforms such as Coinbase and Gemini, and a spot ETF has existed since August 2026. Platforms must still apply anti-money-laundering rules and may restrict withdrawals to shielded addresses or certain countries.

Risks and criticism

• Regulatory risk: delistings have already happened in some countries, and EU rules tighten in 2027.
• Governance: the 2026 split between ECC’s team and the Bootstrap board showed tensions over who steers development.
• Mining concentration: in September 2023, the ViaBTC pool controlled over half of the hash rate.
• Limited shielded use: privacy only applies if users choose shielded addresses.
• Volatility: ZEC can rise or fall sharply.

How to store ZEC

To benefit from privacy, use a wallet that supports shielded addresses; the official site lists wallets such as Zodl (formerly Zashi). Keep your recovery phrase offline and consider self-custody for long-term holdings, as an exchange can delist ZEC. When withdrawing, check whether the platform allows shielded addresses. More resources are available on z.cash.